Capital One intends to cut 132 small business bankers and related jobs in San Francisco, sending much of the work to Texas, a lower-cost region.
The job cuts are being made “with the goal of simplifying our structure and reprioritizing our small business bank tech and digital investments to support long-term, sustainable growth,” a Capital One spokesperson said. “We’ve decided to co-locate our small business roles in San Francisco with our existing small business teams in the Mid-Atlantic and Texas.”
The exact locations for the jobs being shifted to Texas were not immediately available.
The McLean, Virginia-based bank said that some affected employees in the Bay Area will be taking on new roles, others will move with their jobs while other positions were eliminated altogether.
“While our small business banking roles are relocating from San Francisco, we will continue to maintain a strong mix of roles in the Bay Area that support our broader Capital One business,” the spokesperson said.
Capital One (NYSE: COF) is the sixth-largest bank operating in Central Texas ranked by local deposits, at $1.17 billion.
The bank's cutbacks are a testament that even employers with deep pockets are considering alternatives for Bay Area jobs that could be done in less expensive parts of the country.
The financial company filed a WARN notice with California regulators on Oct. 19 for the permanent layoffs that are effective Jan. 8.
Led by CEO Richard Fairbank, Capital One said employees losing their jobs are eligible for severance packages and outplacement services.
